Indonesia hikes rates, others hold off

Reuters, JAKARTA and WELLINGTON

At 2.5 percent, the base rate in South Korea is near a record low, and the central bank’s decision to maintain its easy monetary policy was expected as it has been supporting the government’s fiscal stimulus.

Rock steady yesterday, the South Korean won has lost just 1 percent of its value against the dollar this year, giving the central bank confidence that the country’s highly open capital markets can weather whatever the Fed does.

Also keeping its rates on hold, the Philippines central bank said it expects inflation to remain subdued into next year, despite the peso’s declines and pressure from volatile oil prices.